Short Term Climax Bottom - But What Will Move Markets the Rest of the Year?

The S&P 500 Index finally bounced.

Technicians sighed in relief as the S&P 500 had an oversold bounce near its April low support level.  On a side note, Wednesday's price plunge marked a 62% retracement of the February-September rally.

The fact that the S&P 500 closed so far off its Wednesday low (in very heavy trading) also has the look of a potential "climax" bottom.

That's the good news.

The bad news is that the two day bounce on Thursday and Friday came on declining volume. In addition, the S&P 500 remains below its August low and 200-day moving average.

From a different perspective, there are many risks blame-worthy for the recent market volatility.

Growth is slowing, prices are deflating, geopolitical turmoil is elevated, and Ebola is spreading.

Deutsche Bank highlighted 10 forces that could move markets between now and the end of the year.


141019 Market Drivers


We live in interesting times.

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